BILL NUMBER: AB 1393 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 7, 2014
AMENDED IN SENATE SEPTEMBER 6, 2013
INTRODUCED BY Assembly Member Perea
( Principal coauthors:
Senators Cannella and Evans )
( Coauthors: Assembly Members
Cooley, Fox, Muratsuchi, and
Quirk-Silva )
MARCH 4, 2013
An act to add Section 116273 to the Health and Safety
Code, relating to drinking water. amend Section
17144.5 of the Revenue and Taxation Code, relating to taxation,
making an appropriation therefor, and declaring the urgency thereof,
to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1393, as amended, Perea. Safe Drinking Water State
Revolving Fund. Personal income taxes: income
exclusion: mortgage debt forgiveness.
The Personal Income Tax Law provides for modified conformity to
specified provisions of federal income tax law relating to the
exclusion of the discharge of qualified principal residence
indebtedness, as defined, from an individual's income if that debt is
discharged after January 1, 2007, and before January 1, 2013, as
provided. The federal American Taxpayer Relief Act of 2012 extended
the operation of those provisions to qualified principal residence
indebtedness that is discharged before January 1, 2014.
This bill would conform to the federal extension and make
legislative findings and declarations regarding the public purpose
served by the bill. The bill would also make a continuous
appropriation from the General Fund to the Franchise Tax Board in
those amounts necessary to make payments to taxpayers who have
included in income and paid tax on qualified principal residence
indebtedness that was discharged on and after January 1, 2013, and
before January 1, 2014.
This bill would declare that it is to take effect immediately as
an urgency statute.
The California Safe Drinking Water Act (state act) provides for
the operation of public water systems and imposes on the State
Department of Public Health various duties and responsibilities.
Existing law requires the department to conduct research, studies,
and demonstration projects relating to the provision of a dependable,
safe supply of drinking water, to adopt regulations to implement the
state act, and to enforce provisions of the federal Safe Drinking
Water Act.
The Safe Drinking Water State Revolving Fund Law of 1997
establishes the Safe Drinking Water State Revolving Fund to provide
grants or revolving fund loans for the design and construction of
projects for public water systems that will enable suppliers to meet
safe drinking water standards. Under that law, the department is
responsible for administering the fund.
This bill would transfer the administration of the fund and the
grant and loan program to the State Water Resources Control Board.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 116273 is added to the
Health and Safety Code, to read:
116273. (a) The Safe Drinking Water State Revolving Fund,
established in Article 1 (commencing with Section 116760) of Chapter
4.5, shall be administered by the State Water Resources Control
Board. The fund shall be administered jointly with the Clean Water
Revolving Loan Fund.
(b) The State Water Resources Control Board is vested with all of
the authority, duties, powers, purposes, responsibilities, and
jurisdiction of implementing the grant and loan programs for the Safe
Drinking Water State Revolving Fund.
SECTION 1. Section 17144.5 of the
Revenue and Taxation Code is amended to read:
17144.5. (a) Section 108(a)(1)(E) of the Internal Revenue Code,
is modified to provide that the amount excluded from gross income
shall not exceed $500,000 ($250,000 in the case of a married
individual filing a separate return).
(b) Section 108(h)(2) of the Internal Revenue Code, is modified by
substituting the phrase "(within the meaning of section 163(h)(3)
(B), applied by substituting '$800,000 ($400,000' for '$1,000,000
($500,000' in clause (ii) thereof)" for the phrase "(within the
meaning of section 163(h)(3)(B), applied by substituting '$2,000,000
($1,000,000' for '$1,000,000 ($500,000' in clause (ii) thereof)"
contained therein.
(c) This section shall apply to discharges of indebtedness
occurring on or after January 1, 2007, and, notwithstanding any other
law to the contrary, no penalties or interest shall be due with
respect to the discharge of qualified principal residence
indebtedness during the 2007 or 2009 taxable year regardless of
whether or not the taxpayer reports the discharge on his or her
return for the 2007 or 2009 taxable year.
(d) The amendments made by Section 202 of the American Taxpayer
Relief Act of 2012 (Public Law 112-240) to Section 108 of the
Internal Revenue Code shall apply.
SEC. 2. The amendments made by this act that
conform to the amendments made by Section 202 of the American
Taxpayer Relief Act of 2012 (Public Law 112-240) to Section 108 of
the Internal Revenue Code, apply to qualified principal residence
indebtedness that is discharged on and after January 1, 2013, and
before January 1, 2014. The Legislature finds and declares that the
amendments made by this act and the retroactive application contained
in the preceding sentence are necessary for the public purpose of
conforming state law to the amendments to the Internal Revenue Code
as made by the American Taxpayer Relief Act of 2012 (Public Law
112-240), thereby preventing undue hardship to taxpayers whose
qualified principal residence indebtedness was discharged on and
after January 1, 2013, and before January 1, 2014, and do not
constitute a gift of public funds within the meaning of Section 6 of
Article XVI of the California Constitution.
SEC. 3. Notwithstanding Section 13340 of the
Government Code, and without regard to fiscal year, there is hereby
continuously appropriated from the General Fund to the Franchise Tax
Board those amounts necessary to make the payments required by this
act to taxpayers who have included amounts in gross income by reason
of the discharge of principal residence indebtedness that was
discharged on and after January 1, 2013, and before January 1, 2014.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to provide tax relief to distressed homeowners at the
earliest possible time, it is necessary that this act take effect
immediately.